Tata Nano has made the world sit up and take notice of the low-cost cars. Low cost cars are not exactly small cars but they are present in every car segment. Logan has been a success world wide as a low cost car in its segment. Low cost car is more of a philosophy that has been acclaimed now amongst the car makers of the world.
India shall witness a surge in small cars over the next two years. Bajaj has already planned to launch its “Nano Fighter” and has geared up its production plans in Chakan near Pune, Maharashtra. However, the appeal for ultra cheap cars like Nano is very limited. Moreover, the profit margins are extremely low and car makers can make a profit only if the volumes are high. If Tata expects to export the car, it would have to make appropriate changes to suit the needs of specific country which may escalate the price.
On the other hand, car makers are experiencing a new learning experience while making a low cost car. Toyota also plans to launch a small car in India soon. Skoda Fabia is the next hatchback model coming to India. It shall roll out from the production plant in mid-2009. Hyundai i10 has already been acclaimed as the car of the year and Hyundai has already decided to make India as its export hub for small cars.
